Grand Union Housing Group switches from LCV purchase to contract hire from Ogilvie08 May 2018

GUHG health, safety and business services manager Richard Pearce (left), with Ogilvie fleet director of sales Jo Clark and Bott sales director Stephen Turner in front of one of the new vans in the fleet

The ability to make fleet operating cost savings and the ‘simplicity’ of monthly fixed costs contributed to Grand Union Housing Group (GUHG) switching to an outsourced contract hire solution with Ogilvie Fleet for its 45 light commercial vehicles.

Historically, GUHG, a provider and developer of affordable housing and related services in Bedfordshire, Buckinghamshire and Northamptonshire, managing almost 12,000 properties, has purchased its fleet vehicles.

However, Richard Pearce, the organisation’s health, safety and business services manager, undertook a root and branch funding review to ascertain the most cost-effective method of acquisition for its vehicles.

Ogilvie Fleet, a vehicle leasing and fleet management company, was among the contract hire providers approached to provide a detailed whole life cost analysis of the fleet.

Utilising the Deloitte modelling tool, Ogilvie Fleet identified that contract hire was the most cost-effective funding mechanism for the procuring of vans by GUHG.

Ogilvie Fleet subsequently worked with Pearce and van users representing the various operatives’ skill sets within GUHG, including electricians, multi-trade operatives and ground maintenance staff, to select vehicle make and models and specify the vans to ensure they were fit-for-purpose.

Vauxhall was selected as the supplier due to its ability to meet cost, vehicle specification and van delivery times as well as its capability to provide service, maintenance and repair though its local franchise network. Additionally, Ogilvie Fleet involved preferred vehicle conversion specialist Bott to equip the vans.

The all-diesel van fleet, which operates over a five-year/75,000-mile replacement cycle, is largely comprised of Vivaro panel vans with tippers based on the Movano chassis cab.

Pearce, who is in charge of the fleet, said: “Value-for-money is clearly vital, but the key reason for opting for contract hire and moving away from outright purchase was that it delivered budgetary simplicity due to monthly fixed costs. We previously found that service, maintenance and repair costs could escalate rapidly in the final year or two of a vehicle’s operating life and that could impact on budget certainty.”

The Vauxhall vans are replacing Ford vehicles and Richard is pleased that the marque has recently announced that the new generation Vivaro will continue to be built in Luton.

Ogilvie Fleet’s services also includes accident management, daily rental and management and assistance with disposal of the legacy vehicle fleet.

In addition a new corporate identity for GUHG is also being rolled out across the fleet beginning with the delivery of the first 12 vehicles, which is already underway.

Author
Will Dalrymple

Related Companies
Ogilvie Fleet Ltd

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